21-Dec-2022: IFSCA and CEEW sign MoU to cooperate on sustainable finance

The International Financial Services Centres Authority (IFSCA) and the Council on Energy, Environment and Water (CEEW) have signed a Memorandum of Understanding (MoU) for mutual assistance and cooperation in the area of sustainable finance.

India recently launched Mission LiFE (Lifestyle for the Environment) as an India-led global movement to protect and preserve the environment. This was closely followed by the commencement of India’s G20 Presidency, with the theme “One Earth, One Family, One Future”. Sustainability is a common thread that runs through both these endeavours. In this context, finance is a key enabler – as highlighted by CEEW research, which estimates that India’s net zero by 2070 target would require USD 10 trillion in investments. GIFT-IFSC, an offshore jurisdiction within India, is emerging as a global hub for sustainable finance. It is against this backdrop that IFSCA and CEEW are collaborating through a wide-ranging MoU, which includes research and joint convenings.

Shri Injeti Srinivas, Chairperson - IFSCA, said, “India has shown global leadership in climate action and has committed itself to achieve net-zero emissions by 2070. This MoU between IFSCA and CEEW, focusing on broad areas of sustainable finance, is a step towards achieving climate goals and mobilising global capital, through IFSC, towards sustainable development”.

Dr Arunabha Ghosh, CEO, CEEW, said, “We cannot talk about climate action without talking about climate finance. For that, capital needs to flow where the sun shines the most – the Global South. This MoU between IFSCA and CEEW will ensure cooperation on thorough research work and development of regulations and instruments for sustainable finance in India and as a conduit to sustainable investment in other emerging economies.”

About IFSCA: The IFSCA is a statutory authority established under the International Financial Services Centres Authority Act, 2019 (“IFSCA Act”) with a mandate to develop and regulate the financial products, financial services, and financial institutions in the International Financial Services Centres (‘IFSC’). GIFT-IFSC is the maiden IFSC in India. The IFSCA aims to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region.

About CEEW: The Council on Energy, Environment and Water (CEEW) is one of Asia’s leading not-for-profit policy research institutions. The Council uses data, integrated analysis, and strategic outreach to explain – and change – the use, reuse, and misuse of resources. It prides itself on the independence of its high-quality research, develops partnerships with public and private institutions, and engages with the wider public. In 2021, CEEW once again featured extensively across ten categories in the 2020 Global Go To Think Tank Index Report. The Council has also been consistently ranked among the world’s top climate change think tanks.

16-Nov-2022: IFSCA executes MoU with the Reserve Bank of India (RBI)

The International Financial Services Centres Authority (IFSCA) and the Reserve Bank of India (RBI) have entered into a Memorandum of Understanding (MoU) for collaboration in the field of regulation and supervision of regulated entities in their respective jurisdictions.

The MoU facilitates technical cooperation and exchange of information.

The IFSCA, being a unified regulator responsible for development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre(s) (IFSC) established in India, is, inter-alia, entrusted with the responsibility of regulation and supervision of authorized banks and non-banking financial institutions operating in such IFSCs.

The RBI is the central bank and monetary authority of India carrying on, inter-alia, the regulation and supervision of banks and non-banking financial institutions as well as undertaking other functions and exercising powers in accordance with various statutes

The MoU opens up avenues for cooperation between the two regulators, thereby strengthening the safety, stability and soundness of respective financial ecosystems and nurturing environments conducive to optimal business development and economic growth.

5-Oct-2022: Committee of Experts on Sustainable Finance submits report to IFSCA

A ‘Committee of Experts on Sustainable Finance’, constituted by International Financial Services Centres Authority (IFSCA) submitted its final report to Chairperson, IFSCA on October 03, 2022. The committee was chaired by Shri C.K. Mishra, Former Secretary to Government of India, Ministry of Environment, Forest & Climate Change. The committee members comprised of leaders and experts from the entire sustainable finance ecosystem including national and international institutions which can be accessed through the link: https://ifsca.gov.in/IFSCACommittees

The main focus areas of the committee were directed towards aligning the IFSC regulations with the international best practices, exploring ways in which capital flows through IFSC can be enhanced and also support development of innovative financial products in the area of green and sustainable finance. The committee has provided its recommendation on various aspects of sustainable finance including products, policies and regulations, capacity building and outreach initiatives related to green and sustainable finance.

Some important recommendations include developing a voluntary carbon market, framework for transition bonds, enabling de-risking mechanisms, promoting regulatory sandbox for green fintech and facilitating the creation of a global climate alliance among others. Considering the significance of the MSME sector in the economic development of the country, the committee also proposes setting up of a dedicated MSME platform for sustainable lending. The committee recommends to facilitate the use of innovative instruments such as catastrophe bonds, municipal bonds, green securitisation, blended finance among others. Focusing on the need to enhance capital flows in IFSC, the committee endorses the need to enable aggregation facilities, impact funds, green equity etc. in IFSC. In addition to the above, it recommends IFSCA to play a vital role in capacity building which lays the foundation for greening the financial system.

The Committee Chair Shri C. K. Mishra on submission of the report expressed his gratitude to IFSCA for providing the opportunity for working on an issue which is of utmost importance for nations across the globe. He said. “The unique mix of the committee members and the vast canvas on which the recommendations are based will surely provide the right start for the efforts being taken by IFSCA and project it as the hub for sustainable finance.”

Chairperson, IFSCA thanked the committee of experts for their comprehensive recommendations and stressed upon the importance that IFSCA attaches to sustainable finance. He said, “The report of the committee of experts would go a long way in shaping GIFT IFSC’s strategies to emerge as an international hub for green finance, while also channelizing global capital to meet India’s net zero commitments.”

18-Sep-2022: MAS and IFSCA to Pursue Cross-border FinTech Innovations

The Monetary Authority of Singapore (MAS) and the International Financial Services Centres Authority (IFSCA) today signed a FinTech Co-operation Agreement (CA) to facilitate regulatory collaboration and partnership in FinTech.

The CA will promote the following:

• Regulatory Sandbox Collaboration – MAS and IFSCA will leverage existing regulatory sandboxes in their respective jurisdictions to support experimentation of technology innovations. This includes referral of companies to each other’s regulatory sandboxes and enable innovative cross-border experiments in both jurisdictions. The CA will also allow MAS and IFSCA to evaluate the suitability of use cases which could benefit from collaboration across multiple jurisdictions, and invite relevant jurisdictions to participate in a Global Regulatory Sandbox.
• Sharing of Information – MAS and IFSCA will share non-supervisory related information and developments on innovation in financial products and services, facilitate discussions on emerging FinTech issues and participate in joint innovation projects.

The CA was signed by the Chief FinTech Officer of MAS, Mr. Sopnendu Mohanty, and Chief Technology Officer of IFSCA, Mr. Joseph Joshy, and witnessed by Deputy Prime Minister and Minister for Finance, and Deputy Chairman of MAS, Mr. Lawrence Wong, and Finance Minister of Gujarat, Mr. Kanubhai Desai, Chairperson of IFSCA, Mr. Injeti Srinivas, Chairman of GIFT Company Ltd., Mr. Sudhir Mankad, and Managing Director & Chief Executive Officer of GIFT Company Ltd., Mr. Tapan Ray.

Mr. Mohanty, said, “This CA builds on the Memorandum of Understanding on Supervisory Co-operation signed between MAS and IFSCA in July 2022 .  The cross-border testing of use cases between Singapore and India will pave the way for operationalising a broader collaboration framework for FinTech use cases involving multiple jurisdictions.”

Welcoming the partnership with MAS, Mr. Joshy, said, “This agreement is a watershed moment that ushers in a FinTech Bridge to serve as a launch pad for Indian FinTechs to Singapore and landing pad for Singapore FinTechs to India, leveraging the Regulatory Sandboxes. The possibility of global collaboration on suitable use cases through a Global Regulatory Sandbox is an exciting opportunity for the FinTech Ecosystem.”

About MAS, Monetary Authority of Singapore: The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors and financial market infrastructures. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, adoption of technology, and upgrading of skills in the financial industry.

About IFSCA, International Financial Services Centre Authority

The International Financial Services Centres Authority (IFSCA) is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centres in India. Housed in Gujarat International Finance Tec-City (GIFT City) in Gandhinagar (Gujarat), GIFT-IFSC is the maiden International Financial Services Centre in India (IFSC).

Established by the Government of India under the IFSCA Act 2019, IFSCA has laid down principle-based regulatory frameworks governing myriad of activities, such as banking, finance companies, capital markets, funds management, insurance, aircraft & ship leasing, etc., which have been globally benchmarked and designed to ensure ease of doing business.

12-Sep-2022: IFSCA Issues Guidelines and Application Form for IFSCA FinTech Incentive Scheme, 2022

The International Financial Services Centres Authority (“Authority” or “IFSCA”), with an overall objective to promote the establishment of a world-class FinTech Hub, at GIFT International Financial Services Centre (IFSC) in India, launched the IFSCA (FinTech Incentive) Scheme for providing financial support to FinTech activities in the form of specific grant(s). The Scheme was notified vide Gazette Notification number IFSCA/2021-22/GN/022 dated 2nd February, 2022.

This scheme shall be open to -

1. Domestic FinTechs seeking access to overseas markets;
2. Domestic FinTechs seeking listing on IFSCA recognised stock exchanges;
3. Foreign FinTechs seeking market access to IFSCs in India and work within the Authority’s regulatory framework;
4. Foreign FinTechs seeking access to domestic market under Inter-Operable Regulatory Sandbox (IORS) framework;
5. Domestic FinTechs extending business to the IFSCs either by way of authorisation or registration or through the regulatory sandbox.

The types of incentives for eligible applicants are:

1. FinTech Start-up grant- This grant shall be utilized for developing a product or a service and related ‘go-to market’ initiatives for a start-up with a novel FinTech idea or solution with a focus on converting the idea into an MVP.
2. Proof of Concept (PoC) grant- This grant shall be utilized for the purpose of conducting a PoC by an early or mature FinTech Entity (FE) in domestic market or overseas.
3. Sandbox grant- This grant shall be utilized by FEs to experiment with innovative products or services in a sandbox.
4. Green FinTech Grant- This grant shall be utilized towards developing solutions facilitating sustainable finance and sustainability linked finance, including ‘Environmental, Social and Governance (ESG)’ investments.
5. Accelerator Grant- This grant shall be utilized for supporting accelerators at the IFSC for capacity building, build capabilities around mentors, bringing investors, bringing more projects or PoC, tie ups, etc.
6. Listing Support Grant - The grant shall be utilized for supporting Domestic FE aspiring to go for listing on stock exchanges recognised by the Authority.

The Grants contemplated under this scheme shall be available to eligible FEs:

1. who are part of the Authority’s Regulatory or Innovative Sandbox;
2. which are referred to the Authority under a FinTech bridge arrangement with a Counterpart Regulator
3. which have either participated or are participating in any Accelerator or Cohort or Special Programme supported or recognised by the Authority; or
4. who are referred to by the entity(ies) including regulatory or supervisory bodies having Memorandum of Understanding (MoU) or collaboration or special arrangement with the Authority.

29-Jul-2022: PM lays foundation stone of IFSCA headquarters at GIFT City in Gandhinagar

Prime Minister Shri Narendra Modi laid the foundation stone of the headquarters building of the International Financial Services Centres Authority (IFSCA) in GIFT City, Gandhinagar. He also launched the India International Bullion Exchange (IIBX), India’s first International Bullion Exchange in GIFT-IFSC. He also launched the NSE IFSC-SGX Connect. Chief Minister of Gujarat Shri Bhupendrabhai Patel, Union Minister Smt Nirmala Sitharaman, Union and State Ministers, diplomats, business leaders were among those present on the occasion.

Addressing the gathering, the Prime Minister said this day is very significant for the growing economic and technological strength of India and also for the growing global confidence in the prowess of India. “Today, in GIFT City, the foundation stone of the International Financial Services Centers Authority - IFSCA headquarters building, has been laid. I believe, as grand as this building is in its architecture, it will also create unlimited opportunities to make India an economic superpower”, he said. The Prime Minister said that IFSC will promote innovation and will be an enabler as well as a catalyst for growth. Institutions and platforms launched today will help 130 crore Indians to get connected with the modern global economy. “India is now entering the league of Countries like the USA, UK and Singapore who are giving direction to global finance'' he added.

Going back to his original concept of GIFT-city, the Prime Minister said GIFT-city is not just for business but the aspirations of the common man of the country are part of the vision of GIFT City. The vision of India's future is connected in GIFT-City, and dreams of India's golden past are also connected with this”.

The Prime Minister recalled that in 2008, when the world was facing an economic crisis and recession, there was an atmosphere of policy paralysis in India. “But, at that time Gujarat was taking new and big steps in the field of Fintech. I am glad that that idea has progressed so far today”, he said.

The Prime Minister noted that GIFT City is making a strong mark as a hub of commerce and technology. GIFT City celebrates both wealth and wisdom. He was also happy to see that through GIFT City, India is moving ahead with a strong stake in the service sector globally. He said that GIFT-city is a venue where wealth creation is happening and the best brains of the world are congregating and learning. ‘In a way, it is also a medium of reclaiming India’s glory in finance and business’, the Prime Minister said.

The Prime Minister said we have to remember that a vibrant fintech sector does not mean just an easier business climate, reforms and regulations. It is also a medium to give a better life and new opportunities to the professionals working in different fields.

He said that post-independence, may be due to the impact of slavery and weak self-confidence, the country kept shying away from the glorious legacy of business and finance and restricted its cultural, economic and other relations with the world. “However, now, ‘New India' is changing this old way of thinking and today Integration is one of our most significant agenda. We are rapidly integrating with a global market and global supply chain”, he said. “GIFT-city is an important gateway to get connected with India as well as global opportunities. When you get integrated with GIFT-city, you get integrated with the entire world”, he said.

The Prime Minister said today India is one of the largest economies of the world. So in future, when our economy will be bigger than it is today, we have to be ready for it now. For this we need institutions that can cater to our present and future role in the global economy. India International Bullion Exchange - IIBX, he said, is a crucial step in that direction. He mentioned the role of gold in ensuring economic empowerment of the Indian women. He said that India’s identity should not remain limited to just a big market but it should be a ‘market maker’. He added “On the one hand, we are bringing in global capital for local welfare. On the other hand, we are also harnessing local productivity for global welfare.”

The Prime Minister said that India’s strength goes beyond giving good returns to investors. He elaborated “At a time when global supply chains are plagued with uncertainty and the world is apprehensive of this uncertainty, India is assuring the world of quality products and services.” The Prime Minister further said “I have many expectations from the new institutions of new India, from the new systems and I have full faith in you. Today in the 21st century, finance and technology are linked to each other. And when it comes to technology, science and software, India also has an edge as well as experience too.” The Prime Minister, while underlining India’s leadership in fintech, asked the GIFT-city stakeholders to focus on fintech. “I expect all of you to target new innovations in Fintech and GIFT IFSC emerges as fintech's global laboratory.”

Second expectation expressed by the Prime Minister was about GIFT IFSC to become a gateway to global debt and equity capital for sustainable and climate projects. Thirdly, IFSCA should work for financial innovations in aircraft leasing, ship financing, carbon trading, digital currency, and IP rights to investment management. The Prime Minister also said “IFSCA should also make regulation and operation cost competitive not only in India but also in comparison to countries like Dubai and Singapore. “Your aim should be to become a leader in regulations, set high standards for rule of law, and emerge as the favourite arbitration center of the world”

The Prime Minister noted that in the last 8 years, the country has witnessed a new wave of financial inclusion. Even the poorest of the poor are joining formal financial institutions today. Today, when a large population of ours has joined finance, it is the need of the hour that government organisations and private players, together, step forward, he said. The Prime Minister called for financial literacy above basic banking as people wish to invest for growth.

About GIFT city, IFSCA, IIBX and NSE IFSC-SGX Connect

GIFT city (Gujarat International Finance Tec-City) was envisaged as an integrated hub for financial and technology services not just for India but for the world. IFSCA is the unified regulator for the development and regulation of financial products, financial services and financial institutions in International Financial Services Centres (IFSCs) in India. The building has been conceptualised as an iconic structure, reflective of the growing prominence and stature of GIFT-IFSC as a leading International Financial Centre.

IIBX will facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialization of gold in India. It will empower India to gain its rightful place in the global bullion market and serve the global value chain with integrity and quality. IIBX also re-enforces the commitment of the Government of India towards enabling India to be able to influence global bullion prices as a principal consumer.

NSE IFSC-SGX Connect is a framework between NSE's subsidiary in the GIFT International Financial Services Centre (IFSC) and Singapore Exchange Limited (SGX). Under Connect, all orders on NIFTY derivatives placed by members of Singapore Exchange will be routed to and matched on the NSE-IFSC order matching and trading platform. Broker-Dealers from India and across international jurisdictions are expected to participate in large numbers for trading derivatives through Connect.  It will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem in the GIFT-IFSC.

11-Jun-2022: Equivalence status by the European Commission to Central Counter Parties (CCPs) supervised by IFSCA

On 1 October 2020, the International Financial Services Centres Authority (IFSCA) became the unified regulator for all financial services and financial products in the International Financial Services Centre (IFSC). Thereafter, IFSCA notified the IFSCA (Market Infrastructure Institutions) Regulations, 2021 on April 16, 2021 and since that date are applicable to CCPs established and operating in the IFSC.

The European Commission (EC), on the basis of its assessment has concluded that the legal and supervisory arrangements in respect of CCPs authorised by IFSCA provide for effective supervision and ongoing enforcement, and comply with the requirements laid down by European Commission in this regard and accorded equivalence status to CCPs supervised by the IFSCA. Accordingly, in terms of the requirements laid down in European Market Infrastructure Regulation (EMIR), the EC on June 08, 2022 has accorded equivalence status to the following CCPs operating in IFSC under the supervision of IFSCA:

1. India International Clearing Corporation Limited
2. NSE IFSC Clearing Corporation Limited

27-Apr-2022: IFSCA Issues Framework for FinTech Entity in International Financial Services Centers (IFSCs)

The International Financial Services Centres Authority (IFSCA), in furtherance of its mandate to develop and regulate financial products, financial services and financial institutions in the International Financial Services Centres (IFSC) and to encourage promotion of financial technologies (‘FinTech’) across the spectrum of banking, insurance, securities, and fund management in IFSC has issued a detailed “Framework for FinTech Entity in the IFSCs”.

The “Framework for FinTech Entity in the IFSCs” is aimed at giving boost to the establishment of a world class FinTech Hub at GIFT IFSC comparable with other International Financial Centers (IFCs). The framework proposes to cover (i) financial technology (FinTech) solutions resulting in new business models, applications, process or products in areas/activities linked to financial services regulated by IFSCA and (ii) advanced/innovative technological solutions which aid and assist activities in relation to financial products, financial services and financial institutions (TechFin).

The framework provides for a dedicated Regulatory Sandbox for FinTech products or solutions namely IFSCA FinTech Regulatory Sandbox and empowers IFSCA to grant Limited Use Authorization within FinTech Regulatory Sandbox to the eligible financial technology entities in IFSC. This would enable them to apply and avail Grants under the IFSCA FinTech Incentive Scheme 2022.

Further, it also enables some class/categories of technology companies having (i) a deployable advanced/innovative technology solution which aids and assists activities in relation to financial products, financial services, financial institutions and, (ii) credible  track record including financial performance, to obtain Direct Entry (Authorization by IFSCA) by IFSCA without entering into the Regulatory Sandbox.

The framework also incorporates the Inter Operable Regulatory Sandbox (IoRS) mechanism. IoRS is a proposed mechanism to facilitate testing of innovative hybrid financial products / services falling within the regulatory ambit of more than one financial sector regulators. IFSCA will facilitate Indian FinTech’s seeking access to foreign markets and foreign FinTech’s seeking entry into India.  

The framework proposes a Regulatory Referral mechanism which shall be governed as per the provisions of the Memorandum of Understanding (MoU) or collaboration or special arrangement between IFSCA and corresponding overseas Regulator(s)

IFSCA endeavors to support FinTech firms for proof of concept (PoC), minimum viable product (MVP), prototype development, product trials, commercialization, and global market access etc.

The GIFT-IFSC offers the unique advantage of being a separate financial jurisdiction within India which is treated like an offshore jurisdiction from FEMA angle with no restriction on currency convertibility. The framework issued by IFSCA, a unified regulator for Banking, Capital Markets, Insurance and Funds Management in IFSC, would enable FinTech firms having innovative ideas or solutions across the banking, capital or insurance sector to have seamless interaction with a single regulator.

21-Apr-2022: International Financial Services Centres Authority (Fund Management) Regulations, 2022

International Financial Services Centres Authority (IFSCA), has notified a comprehensive regulatory framework for Investment Funds in the official gazette on April 19, 2022.

The salient features of the regulations includes:

1. Registering the Fund Management Entity: A Fund Management Entity will be registered with IFSCA and will be able to manage different types of funds and schemes subject to meeting the eligibility criteria.
2. Green Channel: Venture Capital Schemes or non-retail schemes soliciting money from accredited investors only shall qualify for a green channel i.e. the schemes filed can open for subscription by investors immediately upon filing with IFSCA. The requirements on scheme size, number of investors, permissible investments, etc. have been detailed in the regulations.
3. Exchange Traded Funds (ETFs): Considering that ETFs offer a means to gain exposure to specific markets or asset classes at a low cost, registered fund managers in IFSC shall be able to launch not just Index based ETFs but also Active ETFs and Commodity based ETFs.
4. Stressed Assets: Realising the important role of IFSC in the Government initiative of addressing the issue of NPAs faced by banks, a framework has been prescribed for special situation funds to be launched by fund managers in IFSC.
5. Environment Social Governance (ESG): Growing number of investors expect fund managers to make ESG issues integral to their investment strategies. With the intent of making IFSC a hub for a host of activities related to sustainable finance, disclosures have been proposed to be mandated at the entity level and scheme level.
6. Family Office: Globally, there is an increasing need for having a formal structure for managing and preserving the wealth of the High Net worth Individuals (HNIs) and Ultra HNIs and their families. Accordingly, a framework to facilitate a self-managed investment fund of a family office has been provided in the regulations.
7. The regulations also provide support for various innovations in a controlled way:
   1. Fund Lab: The fund managers may try new strategies in a controlled manner and build a track record for their fund.
   2. Special purpose vehicle (SPV) as a co-investment structure and leverage: FME shall be permitted to create SPVs under the main scheme to enable undertaking co-investment or leverage along with the Fund/ scheme subject to certain conditions.
   3. Retail participation in private markets: There has been a growing need to facilitate investors at large to invest in private markets. Accordingly, it is proposed to facilitate retail close ended schemes to invest in unlisted securities subject to certain conditions.

In addition to the above, the regulations detail the role of various entities, prescribe code of conduct, advertisement code, investment valuation norms and important governance requirements, including the substance requirement. The regulations are available on IFSCA’s website for reference.

20-Apr-2022: IFSCA executes MoU with National Insurance Academy (NIA)

The International Financial Services Centres Authority (IFSCA), with an objective of capacity building and providing skilled talent pool in the insurance sector in International Financial Services Centres (IFSCs), has entered into a Memorandum of Understanding (MOU) with the National Insurance Academy (NIA).

IFSCA aims to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform at regional/ global level. Insurance is an emerging sector at IFSC, and the MoU with NIA would go long way in capacity development in the field of insurance.

The National Insurance Academy (NIA) is a premium institution devoted to equip the insurance industry with the best of talents. NIA has been involved in devising and continuously upgrading the curriculums and imparting the training program in the insurance industry in India to meet the needs of the ever-dynamic insurance sector.

This MoU endeavours to build required skilled manpower for the International Financial Services Centre (IFSC). With the focus to address needs of IFSC Insurance entities, IFSCA had already executed an MoU with Insurance Institute of India (III).

13-Apr-2022: Expert Committee on Longevity Finance recommends setting up of Longevity Hub at GIFT-IFSC

International Finance Services Centres Authority (IFSCA) constituted Expert Committee on Longevity Finance, co-chaired by Ms. Kaku Nakhate, Country Head (India), Bank of America and Mr. Gopalan Srinivasan, Ex-CMD, New India Assurance Co. Ltd. submitted its final report to Chairperson, IFSCA on 12th April 2022.

The committee examined emerging trends in Longevity Economy globally and observed that people over 60 years are still very much a highly productive demographic group in terms of purchasing power and make up the wealthiest part of financial system with a global spending power of $15 trillion.

Highlighting the critical role of financial services sector for the growth of Longevity industry, the Committee recommended the setting up of first Global Longevity Hub (GLH) in GIFT-IFSC and suggested that the hub should focus on developing the longevity economy by offering various longevity finance solutions in coordination with leading corporates and financial institutions such as Banks, Pension Funds, Asset Management Funds, Insurance Companies, etc.

Ms. Kaku Nakhate, Co-Chair of the Expert Committee stated, “Advances in healthcare and medical technology have increased the lifespan of humans. The long-term vision of building a strong longevity finance hub at IFSC can open-up opportunities in wealth management, insurance, pension, silver entrepreneurship and medial tourism. This will help GIFT IFSC emerge as a global leader in longevity finance, immediately addressing the requirements of baby boomers, Gen X & Gen Y cohorts, and setting the path for millennials. I would encourage global banks, insurance companies, financial institutions, and FinTech's & health-techs to set up shops here to create a unique longevity hub for the world.”

“This is a great move and will have very positive impact on the role of silver generation,” observed Mr. Gopalan Srinivasan, Co-Chair of the Expert Committee. He further stated, “It has been a pioneering effort on the part of IFSCA to establish an expert committee on Longevity Finance and recognize the importance of developing longevity finance hub in IFSC. The Hub will focus on skill development, entrepreneurial development and also address the demand of financial and insurance products for silver generation.”

Chairperson, IFSCA, thanked the Expert Committee for their valuable recommendations and supported the idea of promoting Longevity Finance as one of the priorities in GIFT IFSC under the overall framework of Sustainable Finance.

The committee members comprised of leaders from the entire longevity finance ecosystem including from areas such as banking, insurance, wealth management, FinTech, legal, compliance and management consultancy.

1-Apr-2022: IFSCA inks MoU with IRDAI

Shri Injeti Srinivas, Chairperson, International Financial Services Centers Authority (IFSCA) and Shri Debasish Panda, Chairperson, Insurance Regulatory and Development Authority of India (IRDAI), have today signed a MoU at IRDAI’s head office at Hyderabad.

This MoU focuses on strengthening of inter regulatory exchange of information, technical cooperation, supervisory collaboration and opens avenues towards developing innovative insurance solutions for the evolving global trends. It specifically enables mechanism for Inter Operable Regulatory Sandbox through FinTech Bridge to facilitate Indian InsurTech start-ups to explore foreign jurisdiction and vice versa.

The IFSCA is responsible for development and regulation of international financial services, including that of insurance sector, in the IFSC, which is treated as a separate international financial jurisdiction, distinct from rest of India. IFSCA aims to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform at regional/ global level.

The IRDAI is, inter-alia entrusted with the responsibility of all round development and regulation of the insurance sector in the whole of India (excluding IFSC area) and for matters connected therewith or incidental thereto.

This MoU will enable coordination, cooperation and collaboration between the two regulators to attract global insurance industry players, including Indian insurance players seeking international markets to create and develop innovative insurance solutions for both India and the world, in a conducive environment.

19-Jan-2022: IFSCA inks MOU with Insurance Institute of India (III)

The International Financial Services Centers Authority (IFSCA), with an objective of capacity building of professionals in the insurance sector in International Financial Services Centres (IFSCs), has entered into a Memorandum of Understanding (MOU) with the Insurance Institute of India (III).

The Insurance Institute of India (III) in involved in devising and continuously upgrading the curriculums and imparting the training programs for the professionals in the insurance industry in India and abroad, to meet the needs of the ever-dynamic insurance sector. The certification by the institute is recognized by the insurance industry, regulators, and other internationally reputed insurance education providers. The Institute is also the member of the Institute of Global Insurance Education (IGIE).

The key areas of MOU are as follows:

1. III would undertake study to make changes to the academic curriculum in meeting the current needs of the insurance industry participants in IFSCA with the view to introduce certificate courses and professional examinations.
2. III would be working on fulfilling the medium- and long-term capacity building requirements of insurance professionals resulting into deepening of insurance business activities in the IFSCA.
3. III would jointly with IFSCA conduct seminars/ workshops/ conferences to pool knowledge of professional workforce for the insurance industry at the infrastructure and facilities available with III for academic activities.
4. III would promote research topics/ subjects relating to working of IFSCA to the students enrolling for doctoral studies under its agreement with the University of Mumbai.
5. On the request of IFSCA, III would nominate its faculties for training and research on global insurance reinsurance laws and regulations of major financial hubs.

IFSCA’s regulatory framework for insurance requires periodic professional examinations and training. III would design and conduct such examinations and training for professional in IFSC which would aid in having skilled talent in IFSC eco-system.